Bosses at Bradford & Bingley today reported that the finance group has held its own during the banking crisis and is on track to deliver underlying profit expectations for 2007.

The bank and mortgage group, the largest lender to landlords in the UK, said in a trading report that it remained substantially funded and was coping well with current economic conditions.

Its boss Steven Crawshaw said that although increased funding costs were putting pressure on its margins and that arrears levels increased slightly recently it was well placed to make headway in the market.

Mr Crawshaw said: "Bradford & Bingley has been resilient and resourceful through the current market turmoil.

"We have successfully funded the bank in very tough conditions and completed the disposal of our non-retail loan portfolios in line with our strategic focus on retail mortgages and savings.

"We are now even better placed to take advantage of opportunities in our market."

B&B shares enjoyed a four per cent gain in today's early trading in the FTSE 250.